Based on the Atlanta Federal Reserve's most recent Survey of Business Uncertainty published Wednesday, U.S. companies said their level of uncertainty over future sales and employment growth in October slightly dropped. Reflecting more stability in sales projections, the survey revealed that Q4 revenue growth uncertainty (smoothed) dropped from 3.87% in September to 3.81%.
Though companies are still more wary about future sales predictions than in the pre-COVID era, the Fed highlighted that sales growth expectations have recovered to their pre-pandemic average levels. Comparably, the poll revealed that from 4.11% in the previous month, employment growth uncertainty (smoothed) slid down to 4.08%. This small drop points to a steadier near-term hiring picture.
The Atlanta Fed's research offers a glimpse of corporate attitude, stressing slow gains in confidence under continuous economic uncertainty. Moreover, these developments also set the stage for upcoming interest rate cuts, which will likely to boost financial markets. However, there has been plenty of deliberation over the intensity of the cuts.
